How much you should spend on a car if you make $60,000 per year depends on financial guidelines including 20/4/10 rule and total transportation budget, but generally around $12,000 to $18,000 for used or $18,000 to $30,000 for new with careful budgeting. If you make $60,000 per year gross income, which is $5,000 per month gross and around $3,800 to $4,200 net per month after taxes, financial advisors recommend spending no more than 15 to 20 percent of gross annual income on car purchase price, or following 20/4/10 rule with 20 percent down payment, loan term no more than 4 years, and total car expenses including loan payment, insurance, and gas less than 10 percent of gross monthly income, which for $60,000 is $500 per month total car expenses, with car payment ideally under $300 to $350 per month. So car price around $18,000 to $30,000 for new car with 20 percent down and 4 year loan at 6 percent interest yields payment around $300 to $500 per month, with $30,000 at upper limit, and for used car around $12,000 to $18,000 recommended for better financial health to keep debt low, with insurance around $120 and fuel $120 keeping total under $500. So if you make $60,000, spend around $18,000 to $30,000 for car with 20 percent down and 4 year loan keeping payment under $350, with $18,000 being conservative and $30,000 upper limit if low other debt, with used $12,000 to $18,000 ideal.
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